CES 210 1st Edition Lecture 3Economic World ViewsEconomy: management of resources to meet the needs in the most efficient manner possibleSustainable Development: meeting the needs of the present without compromising meeting the needs of generations in the futureDefining ResourcesResources: anything with potential use in creating wealth or giving satisfaction- Nonrenewable resources: materials present in fixed amounts contained in the environment (minerals) or renewable over time (gasoline)- Renewable resources: materials that can be replenished or replaced (sunlight)- Intangible resources: abstract resources like open space, beauty, serenity, and so onCapitalCapital: any form of wealth that can be used to create more wealth- Natural: from nature- Manufactured or built: tools or infrastructure- Human, cultural, or social: shared values, trust cooperation, knowledge, experienceClassical Economics- Founded by Adam Smith and is defined as; originally a branch of moral philosophy concerned with how individuals interest and values intersect with larger social goals- Capitalist system: market competition between willing sellers and fully informed buyers is believed to bring about the greatest efficiency of resource use.- In a real market some low cost production of goods require that some cost are externalized (passed off to someone else)- David Ricardo further refined the relation between supply and demandThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.Supply: the quantity of a product being offered for sale at different pricesDemand: the amount of product or service consumers that are willing to buy that product at various prices as long as their preferences are met- In a free market supply and demand should meet at a market equilibrium, but in real life prices are determined by marginal cost and benefitsMarginal costs: the cost of producing one more unit of product or service (for the seller)Marginal benefit: how much would he or she benefit from buying one more unit? (for the buyer)Price Elasticity: item follows supply and demand curves exactlyNeoclassical Economics Emphasize GrowthPolitical Economics: is concerned with social structure and relationships among classesNeoclassical Economics: adapted principles of modern science with economic analysis- This retained emphasis of scarcity and supply and demand in determining prices and resources allocation- Claimed to be a objective, value-free approach- Consistent growth is seen as necessary and natural resources are interchangeable, materials and service provided by the environment are NOT indispensible. Ecological Economics- Assumes that natural resources are limited and valuable and that manufactured capital is abundant- Questions the idea of unlimited economic growth; concern about carrying capacitySteady-State Economy: characterized by low human birth and death rates, use of renewable energy sources, material recycling, emphasis on efficiency and stabilityEconomics and Ecology (tends to ask questions about long term use)- Are we using resources efficiently?- Are the costs of our resource use reflected in the price we pay for goods?- Are there alternative strategies that could help use product goods and services with fewer